Search Results
Journal Article
Taiwan provides test case for financial liberalization
Journal Article
Pegging, floating, and price stability: lessons from Taiwan
Journal Article
Intervention, sterilization, and monetary control in Korea and Taiwan
This paper uses a four-variable vector autoregression model to explore how monetary authorities responded to shocks in Korea and Taiwan over the period 1981.1-1994.12. The analysis reveals that sterilization is an important element of the response to shocks to foreign assets in both economies. In particular, monetary authorities do not appear to be prepared to accept fluctuations in the exchange rate and the money supply that may result from changes in foreign assets, but more readily accept fluctuations in these variables that result from domestic credit shocks. There are also differences ...
Journal Article
Exchange rates and trade adjustment in Taiwan and Korea
Journal Article
Exchange rate policy and shocks to asset markets: the case of Taiwan in the 1980s
This paper uses a simple theoretical model to show how the credibility of unsterilized intervention policy may affect the pattern of adjustment in the exchange rate, velocity, and asset prices: When the outcome of unsterilized intervention is credible, any degree of exchange rate stability can be achieved at the cost of a sufficiently large, one-time change in the money supply. When the outcome of intervention is not credible, intervention can lead to persistent, and possibly accelerating, changes in exchange rates, the money supply, velocity, and asset prices. Under certain conditions, ...
Working Paper
The economic effects of a potential armed conflict over Taiwan
This article examines the likely economic effects of a Chinese invasion or blockade of Taiwan for the U.S. and the world by considering historical precedents. Such a conflict would likely produce a flight-to-safety in the asset market, huge disruptions in international trade, banking problems, and would greatly exacerbate existing fiscal pressures. The authorities of the People’s Republic of China would probably try to sell U.S. and other western securities prior to a conflict to avoid sanctions on those assets. Such sales would be temporarily disruptive but would likely have only marginal ...
Journal Article
A liberal discussion of financial liberalization